Deciding whether or not to proceed with a potential claim is a decision that is worthy of objective analysis. Even in the simplest case, certain factors should be considered before asserting the claim. Unfortunately, these factors are often overlooked, which leads to inconsistent and impulsive decision-making regarding the handling of claims from the initial making of the claim through negotiation, settlement, and litigation or arbitration.
The corporate environment is often no different. Decision makers may fail to effectively analyze a claim before deciding whether or not to assert it. They may become disillusioned or encouraged by reports of inconsistent results for seemingly similar claims. If an improvidently calculated claim is large enough, the decision maker may feel pressured to assert it, regardless of the merits of the claim. Such haphazard decision-making may lead to excessive costs, which, in turn, may prove detrimental, or in a worst-case scenario, fatal to the continued existence of the organization.